A new state fund that will benefit railroads and economic growth recently received $15.5 million from the North Carolina Railroad Company.

NCRR paid the dividends Dec. 20, designated to the new Freight Rail and Safety Fund to support the state’s economic development efforts, according to a statement from the company.

Scott Saylor, president of NCRR, said the railroad company looks forward to continuing to work with the Department of Transportation and Department of Commerce on future investments in freight rail and improving the economy though the new statewide program.

“We remain committed to our mission to develop the unique North Carolina Railroad corridor for the good of the people of North Carolina,” he said.

During this year’s session of the N.C. General Assembly, legislatures enacted a measure allowing N.C. Railroad Company to issue dividends for the new Freight and Safety Rail Fund. NCRR receives its revenue from its long-term lease agreements and does not receive state appropriations.

Since 2000, the railroad company has invested more than $69 million in capital improvements and has committed to invest an additional $60 million in capital improvements through 2017.

Saylor said this is the first time in recent years NCRR has been part of a pool of revenue going to the state for upgrading transportation infrastructure. But the company has been investing its revenue in capital improvements, including bridges, underpasses, new tracks, upgraded signaling, and passing tracks since 2000, he said.

“The key is this is on a statewide basis,” Saylor said. “This is good for the state because it allow the resources to be used statewide for economic development.”

Saylor said the new fund was more significant than funding the Department of Transportation used in the past. The combined dividends of NCRR, DOT and private investors will be about 15 times more funds than DOT’s limited resources in the past for rail and safety upgrades, he said.

Paul Worley, rail division director for DOT, said the Freight Rail and Safety Fund could be used for things like improving short-line railroads and for economic development, like providing a rail spur to an industry in rural areas.

“For the number of years I’ve been involved in the rail industry, this is the biggest project that has been carried forward for freight rails and safety and economic opportunities,” Worley said. “The General Assembly created this fund as part of its budget. We at DOT are really excited to have the opportunity to deliver some new projects like this that will better the rail system and create jobs.”

Worley said the rail industry was trending toward larger and more freight cars per train and that creates a need for modern and fortified railroads tracks. The new state fund could help with that transition, he said.

Page 2 of 2 - DOT sent out inquiries to short-line railroad track companies and the ports to see what their needs were. Once those projects are identified DOT staff will make a recommendation — based on need and cost benefits to the Board of Transportation, Worley said.

More than $200 million, which includes $41.5 million from NCRR, may be spent on projects (not yet under contract or fully funded) to upgrade safety and capacity of rail lines through 2020, according to NCRR reports.

Saylor said one of those projects tentatively scheduled for New Bern in 2020 is siding and associated support tracks possibly between NCRR’s freight yard off of National Avenue and Cove City. The siding would be used for the connection between the NCRR East Coast line and the North/South Chocowinity line. Estimated cost of that project is $20 million.

“We have discussed the idea there was a need for passing tracks or a storage track north of the existing yard,” Saylor said. “We are trying to prepare for future growth at the port and to the north at Chocowinity and PCS Phosphate.”

If that proposal is accepted, it could potentially move some of the yard-switching operations from the current rail yard farther north between Cove City and New Bern, Saylor said.

The North Carolina Railroad Company owns and manages the 317-mile rail corridor running from the Port of Morehead City to Charlotte, carrying up to 60 freight trains and 10 passenger trains daily. On average, two to four freight trains travel through New Bern daily.

Eddie Fitzgerald can be reached at 252-635-5675 or at eddie.fitzgerald@newbernsj.com. Follow him on Twitter @staffwriter3.